Elan Corporation, announced the completion of the sale of its European sales and marketing business to Medeus Pharma Limited, a new UK pharmaceutical company backed by Apax Partners Funds. Elan has realized total consideration of approximately $120 million from this transaction, which was previously announced on December 23, 2003. Approximately 180 employees of Elan's European sales and marketing business will transfer their employment to Medeus Pharma Limited. Separately, Elan expects to complete the sale of certain rights to two products in the UK and Ireland for approximately $10 million during the first quarter of 2004.
Elan said the announcement marked the formal conclusion of its recovery plan, which was announced in July 2002; involved the restructuring of its businesses, assets and balance sheet; and resulted in divestiture proceeds of more than $2 billion, ahead of the target of $1.5 billion.
Kelly Martin, Elan CEO, said, "The success of our recovery plan returns Elan to a position where the focus is on our people, our science and our commitment to patients. We are excited about optimising our science and business plans, creating value for our shareholders, and focusing on therapies that will help millions of patients and their families."
Elan said that the announcement also marked the end of operations for its Elan Enterprises business unit, which was created as part of the recovery plan and had focused on the disposition of certain businesses and other assets, including business ventures and non-core pharmaceutical products. Elan said that neither the completion of the recovery plan nor the dissolution of Elan Enterprises would preclude the company from considering future, specifically targeted divestment and acquisition opportunities.